On January 31, 2026, Sun Pharmaceutical Industries Limited (NSE: SUNPHARMA, BSE: 524715) reported a net profit of Rs. 33,688 million for the third quarter ended December 31, 2025, a 16.0% increase year-over-year.
Consolidated sales reached Rs. 154,691 million, supported by a 16.2% increase in Indian formulation sales and growth in global innovative medicine segments. The Board has declared an interim dividend of Rs. 11.00 per share as the company expands its specialty portfolio.
Where Does Sun Pharmaceutical Industries Limited Stand Today?
Sun Pharma is the largest pharmaceutical company in India and ranks as a leading specialty generics company globally. The company maintains vertically integrated operations with manufacturing facilities spread across five continents, serving over 100 countries. Its business model focuses on three primary areas: Innovative Medicines, Generics, and Consumer Healthcare products.
Latest Quarterly Results and Highlights
For Q3FY26, consolidated sales grew by 15.1% to Rs. 154,691 million. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 23.4% to Rs. 49,485 million, resulting in an EBITDA margin of 31.9%. The company invested Rs. 8,928 million into research and development (R&D), representing 5.8% of sales for the quarter.
Performance by Business Vertical
India Formulations: This segment recorded sales of Rs. 49,986 million, a growth of 16.2% over the same quarter last year. India formulations accounted for 32.3% of total consolidated sales. The company’s market share in India increased from 8.1% to 8.4% according to December 2025 reports.
US Formulations: Sales in the US reached US$ 477 million, a marginal increase of 0.6%. Growth in the Innovative Medicines segment offset a decline in the generics business. US operations contributed approximately 27.5% to total consolidated sales.
Emerging Markets and Rest of World (ROW): Emerging Markets sales rose 21.6% to US337million.ROWformulationsalesincreased14.5 296 million.
Active Pharmaceutical Ingredients (API)
External API sales declined by 4.7% during the quarter to Rs. 5,412 million.
Key Segment Developments and Regulatory Milestones
The “Specialty” business has been renamed to “Innovative Medicines” to reflect the company’s focus on differentiated therapies. Global Innovative Medicines sales reached US423millioninQ3FY26, including a US 55 million milestone payment.
Recent regulatory milestones include the launch of Unloxcyt in the United States and the introduction of Ilumya in India. The R&D pipeline currently includes five novel entities in the clinical stage. A supplement for Ilumya for psoriatic arthritis has been filed with the US FDA. As of the reporting date, 116 Abbreviated New Drug Applications (ANDAs) and 14 New Drug Applications (NDAs) await US FDA approval.
Core Growth Strategies and Strategic Expansion
Management commentary indicates well-rounded growth across all business segments, particularly branded businesses in India and Emerging Markets. The core strategy involves expanding the innovative product offering to bring differentiated therapies to patients. The company launched 12 new products in India during the quarter and 26 products year-to-date.
Full Year Context and Interim Dividend
For the first nine months of FY26 (9mFY26), sales reached Rs. 436,604 million, representing 11.3% growth. Net profit for the nine-month period was Rs. 87,654 million. The Board of Directors declared an interim dividend of Rs. 11.00 per share for FY26, an increase from the Rs. 10.50 interim dividend provided in the previous year.
Guidance and Future Outlook
The company continues to invest in building its pipeline for global markets. Future milestones include regulatory filings for Fibromun in soft tissue sarcoma and Nidlegy in melanoma. Clinical trials are ongoing for candidates such as GL0034 for type 2 diabetes and MM-II for osteoarthritis pain.
Broader Industry Trends
Sun Pharma maintains the No. 1 ranking by prescriptions across 14 different doctor categories. The shift toward innovative medicines reflects broader industry moves toward high-value, specialized pharmaceutical products to sustain long-term growth in competitive markets like the US.